Strengthened Trade Practices Act Would Benefit Society

The Fair Trading Coalition (FTC) which represents 22 small business organisations committed to reform of the Trade Practices Act believes that a strengthened Trade Practices Act is necessary for the long term benefit of consumers and Australian society.

In particular, the FTC believes that section 46 (misuse of market power) and section 51AC (unconscionable conduct) of the Act need to be strengthened to provide a regulatory environment which encourages fair competition by all participants in the market.

The FTC believes that section 46 is not working as the Parliament intended that it should and that therefore amendments are required to ensure that all businesses can compete fairly with each other. Small business believes that consumers’ interests are best served by a diversity of operation and ownership structures. Small business is not looking for protection; it is rather seeking competitive neutrality.

In its submission to the current Senate Economics References Committee inquiry into the effectiveness of the Trade Practices Act in protecting small business, the Fair Trading Coalition has recommended:

• that the misuse of market power section of theTrade Practices Act (s46) be amended, particularly in light of issues raised by the High Court Boral decision;
• that section 51AC (unconscionable conduct) be strengthened to, among other matters, proscribe ‘take it or leave it’ contracts and unilateral variation of contracts; and
• the introduction of a collective negotiation process for small business (as has been proposed by the Government in its response to the Dawson Review of the Trade Practices Act).

Despite the view of big business that the Trade Practices Act does not need changing, small business will continue to argue that the Act needs strengthening. The FTC calls on the Senate Economics Committee to support calls for changes to the Act and also urges the Government to implement the Dawson Review recommendation on collective negotiation arrangements for small business.

The Fair Trading Coalition believes that it is important that the Trade Practices Act provide for a balance between competition, competitors, consumers and fair trading. The members of the FTC strongly believe that small business makes a valuable contribution to our society.

For further information contact the Motor Trades Association of Australia on 02 6273 4333

Apple & Pear Growers Association of SA Inc * Australian Automotive Aftermarket Association Ltd (AAAA) * Australian Automobile Dealers Association (AADA) * Australian Hotels Association (AHA) * Australian Motor Body Repairers Association (AMBRA) * Australian Newsagents’ Federation (ANF) * Australian Petroleum Agents and Distributors Association (APADA) * Australian Private Hospitals Association (APHA) * Australian Service Station and Convenience Store Association (ASSCSA) * Australian Business Enterprise Centres (BECA) * Chamber of Women in Business (CWB) * Civil Contractors Federation (CCF) * Council of Small Business Organisations of Australia Ltd (COSBOA) * Drycleaning Institute of Australia (DIA) * The Horticulture Council Ltd (HAC) * Independent Liquor Group NSW (ILG) * Independent Liquor Stores Association (ILSA) * Liquor Stores Association of Victoria (LSAV) * Motor Trades Association of Australia (MTAA) * National Institute of Accountants (NIA) * Pharmacy Guild of Australia (PGA) * Queensland Fruit & Vegetable Growers (QFVG)